Medical Bills Sent to Collection Agency Making Threats – Settle Debt or Pay What I can Afford?
A few years back, I had a hernia surgery. My parents paid for part of the procedure, and the hospital was able to cover the cost of the operating room with their indigent fund. However, a previous E.R. visit generated a bill for a little over $600.
I have been getting a lot of these calls regarding it, with a recording "Is this" (different voice) "John C.." (different voice) "If so, press one". I had gotten some previously, and stayed on the line long enough to explain that I had been working on creative projects and doing odd jobs, and I had no significant assets. Then, the debt got passed to a Franklin Collection Agency. The guy sounded friendly enough, but he says that if I just start paying what I'd prefer to, the debt will go to their legal department, and I'd have to pay an additional $200 in court costs.
Allowing the case to go forward isn't completely out of the question, since a wage garnishment would affect me only when things were going well enough to have a wage (they are also helping me get some dental work done); but I'd prefer to pay e.g. $50/month. They say that if I don't give them an account with automatic withdrawal, and agree to give them ~$164, or pay ~$219 with a non-automatic withdrawal account, that it will not prevent them from sending me a summons, and, the fellow said, "Frankly, I don't know why you haven't gotten one already."
I may be able to scrape one of these amounts together, but I'd really like some advice on if the guy with Franklin is telling it straight, and what are the pros and cons of either 1) paying it like they want, 2) just paying, say $50/month anyway, or 3) not paying it. It seemed like a last-minute ambush for money TODAY, but maybe or maybe not how they are proceeding is normal, and I should just cough up badly needed money. He says "the bank" is unwilling to accept a settlement.
Should I go to court, can I get a public defender, and are my odds good at getting a 60% settlement?
What do I do about medical debt and the collection agency saying summons is overdue?
—John C.
When a debt collector tells you that your being sued is long overdue, take it with a grain of salt. It is not that they cannot or will not sue. I would need a whole lot more information in order to offer feedback about the risk of that happening to you. But collectors are trained to press your emotional and stress buttons in order to get paid. Making reference to being sued is rather effective.
Settling medical debt is often different than negotiation credit card bills that went unpaid.
You mentioned he said “the bank” and used quotes. The debt collector you spoke with probably also collects on bank debts, not just medical bills. I would not read too much into that other than, here is an example of a guy following his script and routine in order to get some form of payment – which accents my point about his reference to a summons being over due.
Negotiating a lower payoff and settling medical debt is often done at higher rates. In other words, you do not save as much. The lower the medical debt, the more the principles I laid out in this article apply: https://consumerrecoverynetwork.com/credit-card-debt-to-include-in-settlement-plan
If you are unable to make payments as high as the debt collector is requesting; if sending smaller payments (that are not agreed to in advance) does not prevent a summons; if you already are preparing yourself mentally and financially to settle at 60% – Save up the money as fast as you are able and settle the medical bill rather than make payments.
I think you can settle this for close to 60%. When you are ready with the money, come back and review the debt settlement section of our fee online debt relief system. Post questions on this page and get feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I received a summons for unpaid medical bills. The attorney told me I will accrue interest at 9% in NY until the debt is paid. Can they charge interest?
Courts can approve interest on judgements. The amount is capped by law in most states.
Being sued by attorney hired by hospital even though I’m sending the attorney payments every month. What, if any, are my options?
What is the balance owed? How much were you sending in each month and for how long? When were you served? How much money can you pull together to offer as a settlement?
Hey Michael I am having seizures and that I have to go to the hospital a
a few times and they charged me a out standing bill that I tried to send
10:00 dollars a month and I have other bills and doctors to go and by
Medication and rent and food and I am on disability can the hospital
take that !!
Your disability is protected. Check out this article for more about state law protections from creditors.
Hi Michael,
My daughter has no medical insurance, and she was hit by a truck while riding her bicycle home from work one evening. The man took off before any information was exchanged. He hit her hard enough that he knocked her out of her shoes. To make a long story short, she wound up haveing a broken hand that required surgery. She had to have pins put in and the whole healing process took about 2-3 months. She was able to get a non-profit organization to help with the cost of the surgery, however, she had a few medical bills that did not get paid. A couple of them are working with her on payments, but a few of them will not even budge on what they want from her as far as a payment. My question is can they refuse to take any payment as long as one is trying to get made, and can they turn her over to collection even though she is making said payment?
They can refuse payment arrangements, and medical bills are regularly turned over to collections even when you are sending in what you can.
There are situations where it is easier to work with a debt collector than the billing company or office.
I have had 800+ credit scores my whole adult life (age64). I pay my bills and am lucky to have great employer health insurance.
Yesterday out of the blue, I get a letter from Phoenix Financial Credit saying they are collecting for a 2013 ER visit to a FL hospital in the amount of $ 1,200.
I called Cigna (their online records don’t go back that far). Cigna has records of paying the hospital a lot of money for that ER visit. I had a $100 copay. When talking with Cigna the name on the bill is slightly different from the Hospital name and she wondered if it is a separate ER group practice that turned this over to collection. Again, I NEVER SAW A BILL FOR THIS BEFORE and NEITHER HAS CIGNA….4 years ago!
Cigna said they’ll send me the EOB for that ER visit but IF it’s a separate entity that did not send them a bill in a timely manner, they won’t pay it now. I asked Cigna if I should contact the Hospital or the collection agency but she advised to just send them the EOB that they are sending me back to them with their dunning letter.
I’m a nut about my good credit and seeing today that this is on my Credit Report is stressing me out.
IF this ‘entity’ had billed Cigna timely (they had my insurance card).. Cigna would have paid it, other than my $50 copay.
How should I proceed…just send them the EOB as Cigna suggests?? Or should I go over to the Hospital and talk to them (though if this is a separate ER practice, I doubt they have billing people there)?
I would follow the advice from Cigna if it were me, and see where things go from there. POst an update, and if you still need to address the bill and the credit reporting, I will suggest filing a debt collection complaint with the CFPB and some other options too.
Thanks…I will keep you posted.
Here’s an update. I did some googling and found that in FL it has been illegal since 2000 for medical providers (and their billing agents) to bill HMO subscribers for balance billing. And since 2016, it’s illegal to bill PPO subscribers for balance billing. I contacted the FL Office of Financial Regulation and they confirmed this. I faxed (and mailed) this info to the collection agency and will let you know their response. I also filed a complaint against Phoenix Financial with the same regulatory board.
I have a hospital that is trying to sue me for a bill i am unaware of from 2008. They said if i was working they would garnish my wages. And since im not and im married they can take my husbands ssi and his truck.. Is this true? His ssi is what we live off of. And his truck he had it before we got married.
Who is the collection agency threatening you?
Hello Michael,
I have a charge off from almost three years ago with ARS. It is a medical debt and I am trying to rebuild my credit. The total is $596.00 and I a wondering what your advice would be.
Thank you in advance,
Jud Hoffman
Call and negotiate a lower pay off. Get them to send you the deal in writing before you pay it.
My son, 34, lives in Colorado. Recently, he was served with a Summons on a 5-year old medical bill.. It was served on him by a collection agency. His court date is February 9th.
We called the hospital, where he was seen, to see if his Medicaid was in place then, or if the hospital could help him apply for the Colorado Indigent Care Program (CICP).
Medicaid confirms that he was not covered, and say they can do nothing else.
I spoke to Big Thompson ER Physicians, the original debtor, to see if they knew where my son could get some help paying this bill The guy wasn’t very nice, and I quickly deduced that I was wasting my time.
I called the collection agency, Wakefield & Associates, and talked to them to see if they knew where he might get help They were nice, but they asked if my son could pay the bill, and gave me a final amount if he paid the bill in full right then. The bill was $300.00 more than the bill I am holding in my hand is.
I even called 211, The Salvation Army. They searched their database, but couldn’t find any help for my son, in our county.
Lastly, I called and left a message at the finance office of our local hospital, instead of their corporate office. I’m waiting to hear back if they can help us with CICP, or some other form of help.
If we can’t find some help, I guess we’re going to have to go to court. I don’t know what to say, other than to tell the truth — my son is indigent, has no car, no personal property, no bank account, no car, etc. He also does not have a job at the moment. He’s behind on child support and student loans, as well. He moved back in with me because he has no money. So all I can think to say to the judge, is what I just wrote.
Obviously, he has no money for an attorney, either.
Can you help us?
You are doing what you can to get indigent status, and are prepared to go to court. Those are the 2 things I would be doing, along with trying to come up with a way to negotiate a settlement, but that will take money your son does not have. He may be looking at negotiating a settlement on the judgment that may get entered in the court.
What is the total balance owed?
The total balanced owed was $443 from the doctors. Wakefield & Associates now has that amount jacked up to over $700.
Can you help him fund a negotiated settlement?
I have no money to help him, otherwise, I would have just paid this bill so he could be done with it, and he could pay me back later. I am permanently disabled and on SSDI. I just barely scrape by each month, with my own monthly bills.
I know they are going to get a judgment against him tomorrow; I’ve already prepared him for that. Now, I had to take someone to court, too, and I got a judgment, but that was only half the battle. The real battle came in trying to collect on that judgment.. He is very worried, and thinks they might put him in jail if he can’t pay on the spot. I have never heard of anyone going to jail because they couldn’t pay a judgment off the same day as court was held. Have you?
Correct. It does not happen. This is a civil court action, not criminal.
Well, we were not the only ones who were afraid of someone going to jail. Some of the other people were, too.
Wakefield had the entire docket filled up, in both courtrooms. Then we were all told to sign up on a list. When my son’s name was called, we met with a lawyer for Wakefield! I guess everyone there met with a lawyer from Wakefield, which seemed odd.
So, he told her the same things I told you. She asked him if he was covered by Medicaid or CICP, and he told her he didn’t know which one, but that he did think he was covered. So, she filed some sort of motion to postpone our hearing for two months, so we would have time to figure this out.
That’s all that happened.
I had to have my appendix removed in Oct 2015 i had not insurance – the bill was 37k – I tried to make payment arrangements with the hospital but they wanted 5 to 6 hundred per month (which I couldnt afford) the bill was sent to collection In October 2016 I made arrangements with the collection agency to pay $250/month. everything was fine for a few months. I would call and make a payment over the phone – I would ask if they could take the payment automatically but they would say no – they dont do that. last month in january I forgot to call and make the payment.
I called today (2days late) and they told me that I defaulted on my payment plan that I now have to pay $30% of the debt to be able to make new arrangements
that would be about $11k which I do not have.
or to pay the whole thing whish is now 41k
I said I cant!
they said then they have to proceed with involuntary collection
can someone help me? I live in WA Sstate
Are there other unsecured debts beside this one, and if so, what do they all add up to?
What do you mean by unsecured debt?
Secured debt is where the lender maintains a security interest in the property until it is paid in full. That would mean you could not sell or pass title until you paid them off. Common examples are homes, cars, boats, etc.
Unsecured debts are typically medical debts, credit cards, unpaid collections from utility and other household bills.
I’m being sued by an Amirata Surgical Associates in New Jersry from surgery I had 3 years ago. The balance is $831.11. I am currently unemployed and living back home with my parents and son. My father has been going through a rough time he just had cancer removed from his bladder and I am helping my mother take care if him and the house chores as well as raise my 14yr. old son. What are my best options.
I would try to raise the money needed to pay a settlement out of court. Sometimes it is a good idea to start of by defending the lawsuit to buy time to raise money.
I would suggest talking with low income legal aid about any assistance they can provide.
Hi December I went to the Emergency room because of a bad toothache nothing was really done other than my pressure was taken and 2 pain pills so a month later a got a bill for a little over 600
And a phone call threatening to take me to court. Now I don’t mind paying the bill but does to pain pills and my blood pressure taking add up to 600? I am confuse about this can you shed some light on this for me
Thank you.
C.c
I sure wish I could tell you, in a way that makes sense, how a moment to take your blood pressure and 2 pain pills amounts to $600.
Was any of this covered by insurance?
Michael Bovee,
No I did not have any insurance
When I went to the emergency room.
C.c
It can be easier to negotiate a lower lump sum pay off on medical bills when there was no insurance coverage paid out. You may want to try negotiating a settlement. Payment plans are an option in many cases too.
I do see medical bills this small go to court.
I really have a question. I have been given a court date for a hospital bill for 1,334 dollars, I have offered them 1 000 but they refused it and said 1,145 dollars they will settle for. I tried to make 20 dollar payments a month before being send to the lawyer and refused my payment from the beginning. I don’t make much and have 2 other hospital bills I am paying for.. I’m afraid the judge will make me pay it all and not not give me to the option to do monthly payments. Please any advise will help. Thank you
The judge is there to rule on whether you owe the debt, and not so much about what you can afford to pay each month. If they get a judgment they can garnish wages in most states, and levy a bank account. Having an agreed upon payment plan in place would prevent that from happening.
You can look to set up that payment in or out of court.
Do you have the 1k to pay in a lump sum?
Yes and it was offered to them but they wanted more and when asked to make a payment plan with the remaining amount, the lawyers receptionist told me no, it’s pretty much all or nothing..
Sometimes they will not relent when they have the court action filed unless you fight back.
Is it legal for the hospital to take payments of 25 to 50 dollars a month then call you and tell you they need more then you tell them you can’t afford more … but they send papers to your job and get it took out of ur check every week this is BS ….
Service providers and lenders do not have to accept only what we can afford to send in as payment. They can sue to collect. If your check is being garnished that suggest your were sued, and with that, as allowed by state law, your paycheck can be garnished before you see it. But there are exemptions that may apply to you in your state. If you meet them, you could be partially of fully exempt. You have to formally contest the garnishment through the court.
We have about $12,000 in medical debt from various providers resulting from a chronic illness and related hospital stay last year. Every bill has now been turned over to collection agencies. As we get the money to pay down the balances, can we send the money directly to the original care providers? I want to pay what we owe to the entities that provided the care.
You can. You will want to be sure they did not sell the debt. Unpaid medical debts are not sold the same way defaulted credit cards are, but it does happen.
Paid medical on your credit reports does not carry the same weight it used to. What is the reason for avoiding the debt collectors?
I have a pass due medical bill that went to a collection agency,.The original amount was 628.03, now the agency is trying to get 953.59. Am I obligated to pay that inflated rate? What are my options and will this effect my credit?
If it is on your credit reports now, paying it will likely improve your credit.
Look to your original agreement with the service provider to determine if any fees and costs are something you agreed to.
I need help working with intermountain health care here I Utah. My son was seen at this hospital that was out of network and I won the appeal with our insurance company. Needless to say my husband received the check that was made out to him cashed the check. We been separated for over 3 years so I was not aware of this he went back to Mexico with the money. And now my son has this huge bill and I’ve tried working out a payment plan and they just will not work with me. I don’t want to have my son be forced to file bankruptcy. Can you help us ?
Ho old is your son?
Hello Michael,
I would appreciate your advice in my situation. I stayed in the hospital last year and total cost was ~$30,000. At that time I had a job and insurance. After insurance my portion was almost $5,700. At first I signed up for a payment plan and take time to research what I can do to lower the balance (I found some charges in the itemized bill that I was (and am still) not agree with). Then I lost my job and still unemployed. 6 months later I tried to negotiate with the hospital but it was not successful, they said there is no way they can lower the balance. I also tried to find out if I can apply for patient assistance program but turned out I am not eligible. The billing department doesn’t want to negotiate and reduce the balance because I had insurance. They also told me they can waive my coinsurance/deductible if the insurance company agrees to waive it. The insurance company said they can not do it. The only thing the billing department could do is to lower my monthly payments.
Now, 6 more months later, I still owe $1,400 and I called again to lower monthly payments and was offered to do a settlement (pay in full – get 10% off), I needed some time to think and they offered 15% off, again I was not ready to decide now and they asked how much can pay, I said 50%, they said 20% is the maximum they can give me.
I have a few question about my options:
1) If I decide to do the settlement should I try to negotiate again to get a better offer, like 30% off? What is the best way to approach this?
2) If I stop paying they will send my account to the collection agency. I was assured that they have an agreement with that agency that it won’t be reported to credit bureaus. Should I (is it safe) to trust them? What would you do in a situation like this?
Thank you for your help!
Settling a medical debt with the set of circumstances you have is not common due to illegal discounting (I explain in the video embedded above). That suggest to me that there may be little wiggle room to get them to go any lower than they are willing to now.
No, I would not trust any debt collector, and I am not all that likely to trust a medical billing service either. But paid medical debts do not harm your credit reports like they used to, so it is not something to get overly hung up on (but I would want to avoid it too).
If it were me I would try like heck to get a better settlement outcome, where I save more money, but would also recognize the situation for what it is and understand that the discount may not get any better.
i am from wisconsin and my husband had a heart attack and it all happened at at hospital that was out of network. the total bills have come to over $30,000.00. i have paid off about $12,000.00 as i had to take a hardship w/d on my 401k. i now will have about $16,000.00 in collections yet and i am going to contact them and tell them right now i can only pay $50.00 monthly and if i can pay more i will send more as i can.. i have other medical bills as my son has a heart defect. i live in wisonsin and i also am worried about what will happen. i think they should be happy with what you are trying to pay there is usually a reason this is in collection and that reason is i could not afford the payments the hospital wants. that would be 2 car payments or a house payment. i just want to know if i can offer $50.00 monthly
They are not required to accept the small monthly payment, and can send you to collection anyway.
Have you looked into chapter 7 bankruptcy? If you qualify it will eliminate the medical debts (and other unsecured bills). I recommend you consult with an experienced bankruptcy attorney. You do not have to follow through with it, but you will learn a lot. And if you do not pay the medical bills for a while, and that collection escalates before you can get a grip on it, you can sleep better knowing you have a trump card to play if needed.